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Commercial vehicles show ‘surprising’ upturn

1st November 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The South African truck and bus industry has shown a “surprising” upturn during 2013, with sales units gearing up to potentially reach over 30 000 units for the year, if the industry maintained its current momentum.

To date, the market has performed well for the majority of the original-equipment manufacturers (OEMs), despite economic challenges and strike action weighing on many industries.

The impressive 10% growth experienced to date has surprised many OEMs, Hino South Africa VP Dr Casper Kruger said at the Truck and Bus Show, held in conjunction with the Johannesburg International Motor Show (JIMS), at Nasrec.

But next year was relatively uncertain in terms of potential sales, with growth expected to remain flat at about 5%.

He said that 22 800 units of commercial vehicles had been sold in South Africa in the year to date. A sales target of 29 000 units for the full year was within reach.

Hino “held up well”, he said, after scaling new heights of sales volumes and recording a high not seen since the mid-2000s. The company had captured markets and accelerated to become the second-best performer in the market.

He noted that the replacement and availability of newer-genera- tion vehicles with better fuel efficiencies had mostly driven the industry rise, boosted by metropolitan councils, including the City of Johannesburg and the City of Cape Town, replacing fleets.

Hino, which had invested over R100-million to expand and upgrade its dealer network, hoped to capture increased sales volumes of between 3 900 and 4 000 units.

The group, which had a year-to-date sales record of 2 900 – up 12.5% on the same period in the previous year – believes a new range of truck and tipper vehicles the company planned to launch would capture sales in segments it did not participate in before.

Meanwhile, Iveco had experienced a doubling in sales volumes – albeit off a low base – over the last two years, rising from unit sales of about 800 in 2011, to over 1 400 currently.

The group, which had “big plans”, had achieved a market share of 5% in 2013, compared with the 3.3% recorded in 2011 on the back of an aggressive, renewed focus on the South African market.

By 2014, Iveco would have increased its unit sales to 2 000 and achieved a market share of 7%, said Iveco Southern Africa MD Bob Lowden.

Strategies, including a Daily4Africa 4×4 roadshow, covering 12 000 km and seven countries, to highlight several new launches; the delivery – for the first time – of a locally produced bus and truck; and a significantly increased network, were aimed at further cementing Iveco’s position in the South African market, and would prove that the com- pany was serious and here for “the long haul”.

The company, which had not exhibited at the previous JIMS, also plans to grow its network, from the current 27 dealers, 33 points of sales and 46 service points to 30 dealers, 38 points of sales and 54 service points by 2017.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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